New Real Estate Mandate
February 26, 2009
This week BHA spoke with a European pension fund that has an interest in opportunistic real estate funds focused on the industrial sector in the US. The firm is looking for industrial-focused funds because it wants stable cash-on-cash returns of 15-20 percent through the life of the fund as well as a strong IRR. The earliest it will be able to allocate is June as it has just filed paperwork for its March board meeting, and would have to wait until the June board meeting to receive approval. The firm tries to allocate $50 million to new investments and it cannot hold more than 20 percent of a fund’s assets, so managers should be raising at least $250 million.